Divorce can be an emotional and contentious affair. It is unfortunate, but sometimes your spouse tries to hide assets in preparation of a divorce with the goal of keeping a property outright without its value being considered in the division of the estate. Having a complete understanding of the marital estate will help you make an informed decision in settlement negotiations or petitioning the Court to divide the community estate in a certain manner. It is imperative that you have a legal team who specializes in locating hidden or undisclosed assets in your divorce.
Q: Which property am I entitled to in a Texas Divorce Proceedings?
Texas is a community property state. All property is presumed to be community property unless a spouse can show by clear and convincing evidence that property is that spouse’s separate property. Generally, separate property is property that was owned before marriage, a gift, or inherited. A Texas judge will divide the community estate between the spouses in a manner that is fair and equitable. In practice, this typically means the estate will most likely be divided on a 50/50 basis unless there are factors that warrant one spouse being awarded more of the community estate.
Q: What if I believe my spouse is hiding assets?
Determining the community estate is imperative. If an asset is hidden, it will not be considered in the division during the divorce. However, if it is later discovered after the divorce, it becomes an undivided asset which can re-open the divorce, throwing the now former spouses back into litigation.
There are many tools which can aid you and your legal team in finding hidden assets. During the divorce process, there are many forms of discovery—these include: Request for Production (request for bank statements, credit card, statements, tax returns, etc.), Written Interrogatories (written questions to the other spouse that must be answered under oath), Request for Admission (asking a spouse to admit or deny having certain assets), or taking your spouse’s deposition (your attorney will ask your spouse questions while they are under oath and most likely being videotaped). Unfortunately, people do lie in the discovery process and continue to hide assets.
Q: What if my spouse does not produce the requested documents or information in discovery?
Your legal team can file a Motion to Compel Discovery and request sanctions against your spouse. If it is found that your spouse has not produced all relevant requested documents or information, the Court will order your spouse to provide supplements by a date certain and potentially fine them for abuse of the discovery process.
Q: What else can I do if I believe my spouse is hiding assets?
There are many ways to find hidden assets. Tax returns are a wealth of information which show income from employers, investments, partnerships and the like. Bank statements and credit card statements can be cross-referenced to see transfers and payments. If money is transferred to an account that you do not recognize nor have received a statement in discovery, you found an undisclosed asset.
The same analysis applies to credit card statements where there is payment from an unrecognized bank account. Subpoenas may be issued to financial institutions or your spouse’s employer to receive unproduced bank statements and employment records such as retirement, life insurance, or employee stock options. Real property records and the Secretary of State can help discovery real property or business interests. Mortgage and Loan Applications can also be helpful as the spouse will hopefully disclose their assets to acquire a loan.
It is important to have a legal team that understands how to find hidden assets. The attorneys at Hunt Law Firm, PLLC are here to help. If you would like more information or to consult with one of our experienced attorneys, feel free to give us a call at 832-781-0320.